At Pleasant Legal Solutions, we understand how stressful financial difficulties can be. Our experienced team, led by Jeanetta Pleasant, is here to guide you through the process with personalized, compassionate support.
When you meet with us, we’ll help you understand your options and take the first step toward financial freedom and a brighter future. Contact us today to get started with an experienced bankruptcy attorney. We are the firm of choice for individuals and families in Hoover, Birmingham, and across Alabama.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, often called “liquidation bankruptcy,” is designed to help individuals eliminate unsecured debts, such as credit card bills, medical expenses, and personal loans. When you file for Chapter 7, a bankruptcy trustee oversees the liquidation of your non-exempt assets, which are then sold to repay your creditors.
However, many people find that they can keep most, if not all, of their personal property due to state and federal exemptions. Once the process is complete, most remaining unsecured debts are discharged, giving you a fresh financial start. Chapter 7 is a powerful tool for those who qualify, providing a straightforward path to debt relief.
How Does Chapter 7 Bankruptcy Work?
Filing for Chapter 7 bankruptcy can seem daunting, but Pleasant Lehal Solutions is here to guide you through the process:
- Filing the petition—We help you prepare and file the necessary paperwork with the bankruptcy court, including detailed information about your debts, assets, income, and expenses.
- automatic stay—Once your petition is filed, an automatic stay goes into effect, stopping most collection actions, including lawsuits, wage garnishments, and harassing calls from creditors.
- Appointment of trustee—The court appoints a bankruptcy trustee to manage your case, sell any non-exempt assets, and distribute the proceeds to your creditors.
- Meeting of creditors—You’ll attend a meeting with the trustee and your creditors to answer questions about your financial affairs under oath.
- Debt discharge—Typically, within a few months, the court will discharge your eligible debts, freeing you from the obligation to repay them.
Navigating Chapter 7 bankruptcy can be complex, so having an experienced bankruptcy attorney is crucial. You can depend on Pleasant Legal Solutions to provide the guidance and support you need to ensure a smooth and successful process.
Chapter 7 Bankruptcy Eligibility
To file for Chapter 7 bankruptcy, you must meet specific eligibility requirements, similar to Chapter 13. One key requirement is passing the “means test,” which assesses whether you genuinely need to file for Chapter 7 or if you have other options.
This test calculates your “disposable income,” the income remaining after paying certain monthly expenses like mortgage or rent payments. If your disposable income is too high, you may be ineligible for Chapter 7.
Notably, you cannot file if you had a prior bankruptcy petition dismissed within the past 180 days, and you must receive credit counseling from an approved agency within 180 days before filing. These requirements ensure that Chapter 7 bankruptcy is reserved for those who truly need it.
Common Misconceptions About Chapter 7 Bankruptcy
Many people misunderstand Chapter 7 bankruptcy, preventing them from seeking the help they need. Here are some common misconceptions:
- Impact on credit score—While filing for bankruptcy does affect your credit score, it also offers a path to rebuild your credit over time. Many people find their credit improves as they eliminate debt and start fresh.
- Loss of assets—A common fear is losing everything you own. However, state and federal exemptions allow you to keep essential items like your home, car, and personal belongings.
- Stigma—There is a misconception that filing for bankruptcy means financial irresponsibility. Medical expenses, job loss, or unexpected emergencies can lead to bankruptcy. It’s a legal tool designed to help you regain financial stability.
Our bankruptcy attorneys can help you see Chapter 7 bankruptcy for what it truly is—a valuable option for getting out of debt and starting anew.
Why Pleasant Legal Solutions?
We understand the stress and anxiety that financial difficulties can bring. Our lead attorney, Jeanetta Pleasant, has over ten years of experience in bankruptcy and foreclosure defense. You can trust our team to provide personalized, compassionate guidance to help you navigate the challenges of Chapter 7 bankruptcy.
From your initial consultation to the final discharge of your debts, we are with you every step of the way. We take the time to understand your unique situation and craft a tailored strategy that meets your needs. Above all, we build strong relationships with our clients, offering support and encouragement throughout the process.
Helping Alabamians With Chapter 7 Bankruptcy
Pleasant Legal Solutions is here to help you achieve a fresh start and regain control of your financial future. Don’t let debt overwhelm you—contact our Hoover office today and take the first step toward a brighter, debt-free tomorrow.